Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX)

Sector: Healthcare Industry: Biotechnology CIK: 0001369568
Market Cap 2.75 Bn
P/B 2.98
P/E 12.63
P/S 4.75
ROIC (Qtr) 21.59
Div Yield % 0.00
Rev 1y % (Qtr) 15.31
Total Debt (Qtr) 2.46 Mn
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 234.66M provides robust 95.35x coverage of total debt 2.46M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 922.96M provides 375.04x coverage of total debt 2.46M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 234.54M exceeds capital expenditure of 114000 by 2057.39x, indicating strong organic growth funding capability.
  • Operating cash flow of 234.66M fully covers other non-current liabilities 161000 by 1457.49x, showing strong long-term stability.
  • Retained earnings of 446.79M provide full 181.55x coverage of long-term debt 2.46M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 234.66M barely covers its investment activities of (114000), with a coverage ratio of -2058.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (114000) provide weak support for R&D spending of 14.70M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 106.41M relative to inventory of 28.03M (3.80 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Long-term investments of 19.17M represent a high 6.21x of fixed assets 3.09M, indicating potential overexposure to financial assets versus operational capabilities.
  • R&D investment of 14.70M represents just 0.08x of SG&A expenses of 184.52M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.99 12.96
EV to Cash from Ops. EV/CFO 8.94 23.73
EV to Debt EV to Debt 851.96 772.65
EV to EBIT EV/EBIT 7.34 -11.30
EV to EBITDA EV/EBITDA 7.06 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 8.94 22.12
EV to Market Cap EV to Market Cap 0.76 68.89
EV to Revenue EV/Rev 3.63 199.70
Price to Book Value [P/B] P/B 2.98 22.62
Price to Earnings [P/E] P/E 12.63 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 79.68 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 55.97 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 52.36 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 40.22 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 51.38 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 51.38 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 43.20 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 4.70 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.63 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 5.36 3.79
Current Ratio Curr Ratio (Qtr) 6.62 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 56.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 49.43 -18,862.18
EBT Margin % EBT Margin % (Qtr) 49.43 -19,783.19
Gross Margin % Gross Margin % (Qtr) 85.70 -8.62
Net Profit Margin % Net Margin % (Qtr) 37.60 -19,732.60